Alliant Energy announced plans Thursday to expand energy production and create new jobs in Iowa as part of a more than $1 billion plan.

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"We have to make sure we have a very long term plan to make sure the lights stay on," said Alliant Energy CEO Patricia Kampling.

The company said it will create several hundred construction jobs as it expands its power plant in Marshalltown. The project is expected to create several dozen permanent jobs to run the plant.

"Certainly there will be more construction jobs, not only in Marshalltown, but the other facilities and there will be jobs, permanent jobs when the facility is brought online," said Tom Aller, president of Interstate Power and Light.

The Marshalltown facility is projected to cost between $650 million to $750 million. It would generate about 600 megawatts of power and be up and running by 2017, the company said.

Kampling said Marshalltown was a natural site for the plant because of its access to natural gas supplies that will power the plant. More than 100 possible locations were considered for the new plant.

The project will have a significant impact on Marshalltown, local economic development officials said.

"By the time you look at the construction jobs, the capitol investment, it's going to have a significant impact on the community for a number of years," said Tom Deimerly, president of the Marshalltown Economic Development Impact Committee.

"Our plan calls for investing more than $1 billion in IPL energy generation over the next five years," said Aller.

Plans also call for $430 million in improvements at the Ottumwa and Lansing plants to increase efficiency and reduce emissions, as well as a new commitment to use power from the Duane Arnold nuclear power plant through 2025.

The governor's office released a statement on the plan Thursday afternoon.

"I applaud Alliant Energy for their commitment to the state of Iowa and choosing to construct a new $650 million facility in Marshalltown. This expansion helps drive Iowa’s economy and creates good paying, quality jobs in our state," said Branstad.